Corruption at Eskom keeps growing and growing. More magic available at jerm.co.za.

By Chris Yelland*

A question often asked of me recently by radio and TV presenters, print and electronic media journalists, is what exactly needs to be done by the new Eskom board and chairman in the weeks, months and year ahead to steady the ship and steer the utility in the right direction.

Chris Yelland

Over the last eight months, the local and international financial community has held back on extending bridging finance, rolling over existing loans and providing new finance to Eskom, until those implicated in maladministration and corruption were removed, and a new credible chairman, board, CEO and business plan was put in place.

Now that Eskom has a new chairman, board and acting CEO, and a start has been made in dealing with key executives and managers implicated in maladministration and corruption, it seems that local banks, financial institutions, pension fund managers and lenders are giving Eskom a bit of grace and space to get its house in order. However, some lenders like Futuregrowth are still holding back.

But when the dust settles and hard reality sinks in, what is it that will be expected of Eskom and government (as shareholder) to regain the confidence of the financial community sufficiently to start extending new finance, be it bridging finance, rolling over or refinancing existing debt, providing new loans, of buying new Eskom bonds?

I would suggest it is now time for ANC President Cyril Ramaphosa to convene a new “war-room” of energy experts, professionals and technocrats, along the lines of Ramaphosa’s previous load-shedding “war-room”, or the former Ministerial Advisory Council on Energy (MACE), to consider some of the issues identified below: